-Refer to Table 10-3. What are the profit-maximising/loss-minimising output level and price?
A) Q = 0 (firm should not produce)
B) Q = 3; P = $18
C) Q = 4; P = $17
D) Q = 5; P = $16

Question

Quizplus · Accepted Answer

The profit-maximizing/loss-minimizing output level is where MR=MC, which is at Q=4 in the table. At Q=4, the price is $17, which is the profit-maximizing/loss-minimizing price. Therefore, the best choice is C.